In astral projection, you leave your host body. So no, it would not just be going on inside his head. It was a vary curious element to have in the film, certainly wasn't expecting something like that going in.

Exactly, his consciousness moved into another dimensional body.

I love that scene between he and The Other, it's one of my Top 5 in the whole film. "You think you know pain? He'll make you long for something as sweet as pain" and then you get that creepy hand across Loki's face. Love it.

I love it too haha. I just meant though, that like, from seeing it from a 3 dimensional view only, it would *appear* that he is just in his own thought, bah lol idk